Insights

Redbubble (ASX:RBL) share price jumps 12% to record high

The Redbubble Ltd (ASX:RBL) share price continued its impressive run and jumped 12% to a record high on Wednesday…
The post Redbubble (ASX:RBL) share price jumps 12% to record high appeared first on The Motley Fool Australia. –

jump in asx share price represented by man jumping in the air in celebration

The Redbubble Ltd (ASX: RBL) share price was a very strong performer on Wednesday.

The ecommerce company’s shares jumped 12% in afternoon trade to finish the day at a record high of $6.11.

This means the Redbubble share price is now up 460% since the start of the year.

Why did the Redbubble share price storm to a record high?

Investors appear to have been buying the company’s shares for a couple of reasons.

The first is a series of positive updates from fellow ecommerce companies such as Kogan.com Ltd (ASX: KGN) and Mydeal.ComAu Pty Ltd (ASX: MYD) that demonstrate that the online shopping boom has continued.

This was particularly the case during the Black Friday and Cyber Monday promotional period, where a number of buy now pay later providers and retailers both reported stellar growth.

Another catalyst was a broker note out of Goldman Sachs last month.

Its analysts reiterated their buy rating and $6.25 price target on the company’s shares in response to Redbubble announcing the appointment of its new chief executive officer, former SEEK Limited (ASX: SEK) executive, Michael Ilczynki.

Goldman seemed to be pleased with the appointment and continues to believe that Redbubble is well-positioned for growth.

Why is Redbubble positioned for growth?

The broker named three reasons why it thinks Redbubble is well-placed for growth and was good value at the time.

It commented:

“(1) expansion of its TAM through continued broadening of its product categories.”

“(2) potential growth from increasing repeat usage on its platform (still relatively low at <1.5X p.a.).”

“(3) further operating leverage as we expect RBL to manage cost growth well below revenue growth over our forecast period (we forecast opex to grow at a 7% CAGR FY20E-FY23E vs. a marketplace revenue CAGR of 18% driving EBIT margins from 1.2% in FY20E to 11.3% in FY23E and an EBIT CAGR of 151%),” Goldman concluded.

Whether the Redbubble share price can go higher in the near term, only time will tell. But it is worth noting that its shares are now trading within a whisker of this price target.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Redbubble (ASX:RBL) share price jumps 12% to record high appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!